The Professional Advisory
- Is it Time to Move?
- Staging A Dental Practice
- The High Cost of Dying
- Patients - Attract and Retain
- Should I Stay or Should I Go?
- Is There a Buyer for Every Practice?
- Good, Better, Best - The Market has Spoken
- Buying Time
- Patients, Patience, Patients
- A Real Patient
- Why Do a Practice Valuation? I'm not Selling
- Irrational Exuberance or The New Normal?
- Do dental equipment and dental technology affect a practice value?
- Finding and Being a Mentor
- Bigger is Better
- Daves Top Ten List for Buyers (Vendors should read this too!)
- How Well Do You Know Your Practice?
- What will happen to dental practice Values in the next 10 years?
- Your Premises Lease is an Important Asset
- What are Associates Thinking?
- There is Life Outside the GTA
- When Is the Right Time to Sell My Dental Practice?
- Mergers are a Viable Option
- Is Your Associate an Asset or a Liability?
- Has your Practice Facility Kept Up With Your Billings?
- The 100 per cent of Gross Myth
- The Past, The Present and The Future
- Caveat Emptor
- Overpaid Long Term Staff
- Selling your Practice in Stages
- A Potential Pitfall of Selling Shares
- Value in Your Practice Through Balance
- Only Trusted Staff Can Defraud You
- To Own or Not to Own Practice Real Estate? That is the Question.
- Coping With A Large Patient Base
- Successful Dental Practice Transitions
- Taking Care of Business
- The Investing Dentist Phenomenon
- Two areas to focus upon that could negatively impact the value of your practice
- Organize your Debt in Order to Sell your Practice
- Having a Better Team
- How Do I Prepare My Practice For Sale
- How Do I Prepare My Practice For Sale? Part 3
- How Do I Prepare My Practice For Sale? Part 2
- How Do I Prepare My Practice For Sale? Part 1
- Advice to My Son or Daughter Graduating from Dental School
- Transition - What to Expect
- Discussion on Digital X-Rays
- Partnerships and Shotguns
- Strategic Planning - How to Get Started
- Calling All Vendors - Practices have Gone Up in Value
- Purchasers: Expect to Pay More for a Practice because of Lower Professional Corporation Tax Rates
- Matrimonial Practice Valuations
- Purchaser's Guide to Affording a Practice
- Location Improvements Throughout Your Career
- Small Practice Valuations
- Partnerships – The Best and The Worst
- Changing Location When the Opportunity Comes Along
- Visual Presentation of Your Practice
- Presentation of Charts
- Your Premises Lease Can Be Your Worst Enemy
- How to Select an Appraiser for Your Practice
- How Are Your Billing Ratios?
- It Pays to Invest in Your Tangible Assets
- The Importance of Separate Financial Statements
- Five Time Frame Levels to Sell a Practice
- 12 Suggestions to Safeguard Computer Data
- How to Buy a Visible Practice
- Why is there a shortage of good practices today?
- The Importance of Equipment in the Purchase of a Practice
- The Balanced Practice
- Will My Practice Be Saleable in The Future?
- Buyer Be Aware
- Excess Profit - The Second Key
- Patients and Profits are the Keys
- Plan Ahead
Volume 7: The Importance of Equipment in the Purchase of a Practice
It’s nice to have newer equipment when you purchase a practice but don’t let older equipment turn you off when considering an otherwise great practice. Equipment that’s 20-years-old won’t have a long life without constant repairs so consider the cost of revamping the equipment and/or the leaseholds when borrowing to purchase a practice. The value of the practice should be reduced because of the expected cost of replacing old capital assets. This comes back to having a good patient base to fund the new capital projects.
There are actually several advantages to having old equipment:
- You can replace the capital equipment with brands you prefer.
- You can purchase the practice with a lower capital expenditure.
- You can lay out the practice in a more contemporary design.
- You can pick the time frame for replacement (remember the patients are used to the old layout and equipment)
- You can focus first on new x-rays and sterilizers.
- Often the vendor would like to keep using the old equipment during transition.
- Left or right handedness is not an issue with old equipment as it can be changed with minimal loss.
Cost of computerization
Non-computerized practices generally should be computerized in today’s market. The cost of computerization is low enough for virtually all practices. Computers are a labour-saving purchase which will pay for themselves and give you reports to better manage the practice.
Computer monitors that are on the front desk appear to be more up-todate if they are the TFT flat screens which now cost only $500 to $600. TFT flat screens are also easier on your staff’s eyes if they are on the computer for much of the day.
Many practices have suspended files on plastic strips that are three or four wide in a drawer. The drawers are generally 18” deep but provision must be made for 36” when the drawer is pulled open. However, there are advantages to using a system of 8 ½” by 11” file folders with an alphabetic colour code. These file folders take up less space and the colour coding allows staff to see misfiled patients more easily. There are a number of suppliers with a variety of prices. This new system is also impressive to show the extensive number of patients that have confidence in you as a dentist. Much of dentistry is the perception of the patient.
In summary, think of older equipment as a potential benefit rather than a drawback when considering a practice. Capital expenditures for computer equipment, meanwhile, should be viewed with regard to payback and efficiency. Finally, filing systems are an important component of your practice.